The company's profitability has shifted from a 11.1% underwriting margin in 2025Q4 to a net loss of $4.5 million in 2026Q1, driven by a combined ratio that climbed to 106.7%.
| Revenue | 1.42B | 1.46B | 1.19B | 1.01B | 829.49M | 576.54M | 499.55M | 397.27M |
| Revenue Growth % | 13.84% | 22.23% | 17.77% | 21.97% | 43.87% | 15.41% | - | - |
| Medical Costs & Claims | 312.18M | 285.39M | 298.59M | 220.66M | 373.55M | 263.06M | 91.03M | 0 |
| Medical Cost Ratio % | 22.02% | 19.6% | 25.06% | 21.81% | 45.03% | 45.63% | 18.22% | 0% |
| Gross Profit | 1.11B | 1.17B | 892.9M | 791.1M | 455.94M | 313.48M | 408.52M | 397.27M |
| Gross Margin % | 77.98% | 80.4% | 74.94% | 78.19% | 54.97% | 54.37% | 81.78% | 100% |
| Gross Profit Growth % | - | 31.14% | 12.87% | 73.51% | 45.44% | -23.27% | - | - |
| Operating Expenses | 1.02B | 1.03B | 799.22M | 746.33M | 444.84M | 368.08M | 393.66M | 386.43M |
| OpEx / Revenue % | 71.95% | 70.85% | 67.08% | 73.77% | 53.63% | 63.84% | 78.8% | 97.27% |
| Depreciation & Amortization | 37.74M | 37.52M | 38.91M | 45.81M | 33.89M | 22.14M | 11.8M | 8.95M |
| Combined Ratio % | 93.97% | 90.44% | 92.14% | 95.57% | 98.66% | 109.47% | 97.03% | 97.27% |
| Operating Income | 85.46M | 139.18M | 93.68M | 44.77M | 11.1M | -54.6M | 14.86M | 10.85M |
| Operating Margin % | 6.03% | 9.56% | 7.86% | 4.43% | 1.34% | -9.47% | 2.97% | 2.73% |
| Operating Income Growth % | - | 48.57% | 109.24% | 303.5% | 120.32% | -467.47% | - | - |
| EBITDA | 123.2M | 176.71M | 132.59M | 90.58M | 44.98M | -32.46M | 26.66M | 19.8M |
| EBITDA Margin % | 8.69% | 12.13% | 11.13% | 8.95% | 5.42% | -5.63% | 5.34% | 4.98% |
| Interest Expense | 0 | 8.7M | 0 | 4.08M | 0 | 0 | 0 | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 85.46M | 139.18M | 93.68M | 44.77M | 11.1M | -54.6M | 14.86M | 11.46M |
| Pretax Margin % | 6.03% | 9.56% | 7.86% | 4.43% | 1.34% | -9.47% | 2.97% | 2.88% |
| Income Tax | -23.72M | -10.04M | 15.38M | 16.59M | 7.02M | 6.75M | 4.82M | 7.25M |
| Effective Tax Rate % | -27.76% | -7.22% | 16.42% | 37.06% | 63.24% | -12.36% | 32.44% | 63.29% |
| Net Income | 36.16M | 49.02M | 17.02M | 20.23M | 32.08M | -46.36M | 10.17M | 4.21M |
| Net Margin % | 2.55% | 3.37% | 1.43% | 2% | 3.87% | -8.04% | 2.04% | 1.06% |
| Net Income Growth % | 35.22% | 188.05% | -15.89% | -36.93% | 169.2% | -556.01% | - | - |
| EPS (Diluted) | 0.36 | 0.37 | 0.10 | 0.09 | -0.07 | -0.56 | 0.68 | 0.01 |
| EPS Growth % | -1.75% | 270% | 7.07% | 231% | 87.27% | -182.35% | - | - |
| EPS (Basic) | - | 0.44 | 0.10 | 0.19 | 0.39 | -0.56 | 0.68 | 0.01 |
| Diluted Shares Outstanding | 101.03M | 346.97M | 88.5M | 340.32M | 336.15M | 82.33M | 14.95M | 329.31M |
Underwriting volatility and claims severity
As reported in recent financial statements, Hagerty's revenue growth trajectory has shifted from double-digit expansion to a 2.4% contraction in 2026Q1, suggesting that the previously robust top-line momentum may be encountering significant resistance within the current macroeconomic environment and competitive landscape for collector vehicle insurance.
The reversal in revenue growth highlights a potential saturation point or a cooling in the enthusiast market that previously fueled consistent double-digit gains. Investors should monitor whether this deceleration reflects a temporary seasonal adjustment or a more structural shift in the demand for high-end automotive insurance products.
Based on the provided income statement data, the combined ratio deteriorated to 106.7% in 2026Q1, indicating that the company is currently operating at an underwriting loss and relying on non-underwriting activities to offset the costs associated with claims and operational expenses.
The fluctuation in the combined ratio, ranging from 84.4% to 106.7% over the last ten quarters, suggests that Hagerty's underwriting performance is highly sensitive to claim severity. This volatility warrants further investigation into whether the company's pricing models are adequately capturing the rising costs of specialized automotive repairs.
According to the latest quarterly figures, the company's transition into a net loss of $4.5 million in 2026Q1 represents a sharp departure from the profitable quarters observed throughout 2025, signaling a potential inflection point where rising loss ratios have begun to overwhelm the firm's operating margins.
This shift appears to be driven by a spike in the loss ratio to 31.4%, which may indicate an inability to pass through inflationary pressures to the policyholder base. The sustainability of the current business model may depend on management's ability to stabilize these underwriting results in subsequent periods.
While the company leverages its proprietary valuation database to maintain a competitive moat, the recent financial data suggests that the high fixed-cost structure associated with the enthusiast ecosystem may be masking underlying underwriting weaknesses, as evidenced by the inconsistent path to net profitability across the observed periods.
The reliance on a membership-based ecosystem to drive insurance sales may create a structural mismatch where the costs of maintaining the brand exceed the underwriting margins generated by the book. Analysts should remain cautious about whether the platform's scale can truly offset the inherent volatility of the P&C insurance business.
Quick answers to the most common questions about buying HGTY stock.
For fiscal year 2025, Hagerty, Inc. (HGTY) reported total revenue of $1.46B. This represents a 266.6% increase compared to $397.3M in 2019.
Hagerty, Inc. (HGTY) is profitable, generating $49.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.4%.
Hagerty, Inc. (HGTY) reported an operating income of $139.2M, resulting in an operating profit margin of 9.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Hagerty, Inc. (HGTY) generated $1.17B in gross profit for the year, representing a gross profit margin of 80.4%. This demonstrates the company's core pricing power and production efficiency.